MontanaKyle
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- Jul 27, 2012
- 6
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I am new here and this is my very first post. Looking around for Entrepreneur forums this one popped up and it looks good.
I am looking forward to contributing to the forum and helping others out.
Before I ask the question I will give you a little bit of my background in hopes this will help you understand my scenario.
I am 30 years old. I have been self employed since 2006 while going to school full time (graduated 2011 with a Bachelors in Aviation Administration, I have 4 kids and a wife) and actually just this year got a job in an industry I have been wanting to break into 4 months ago. Dealing with Aviation.
Anyhow I have two businesses currently and I am by no means near the level financially that I want to be at. But am on the road to that financial goal...
So that being said here is my big question about a Partnership.
One of my companies I started deals with doing online marketing, web design, that entire side of things.
I met an individual who own and runs a successful business that is completely offline and is not related in any shape or form to an online business.
So he tells me he has been looking for someone/a company to help him implement an idea of his. We have several meetings and subsequently the idea is great but it is going to be much more involved than just setting up a website and being done. There is going to be a lot of ongoing work, building a community, using facebook etc.... All stuff I know how to do and do on a daily basis. Basically everything needing done, I know how to do it or have the means to get it done. Now this individual knows absolutely nothing about online marketing or any side of the things I know. He doesn't understand really how facebook works or how you can advertise on there etc... He basically has the capital to invest in this venture, and some business skills to provide and a knowledge and understanding of the specific niche, which I do as well but not as much as him. Being 100% truthful if I had the time, and money to do this I would not need any sort of partner and could just hire it all out.
So as I looked at what he wants done I decided I want to be a partner in this and build it up, maintain the site, etc... and take this to who knows how far it could go. The market is there, it is a billion dollar market with plenty of room for a site like the one we want to do because currently there really isn't one to the level we want to take it.
My initial offer to him was he pays me X amount of dollars each month to work it full time. Basically a salary then once we become profitable I get paid that Amount up until we go over that amount then we both get paid an amount until we reach the same dollar amount and everything is a 50/50 split.
Well he said he couldn't do the dollar amount becuase it was too high, which it was, but I wanted to see if he could pay it so I asked. And he doesn't want to do a 50/50 split. He wants to hold the majority and be able to make a decision if it comes down to where we cannot agree etc... But he is willing to pay me for a specific period of time or a set dollar amount as well as do a partnership.
So my dillema is, what is the best way to go about this? I truly want a 50/50 partnership because without me he is completely dead in the water, has no idea how to even start this, and even if he hires a company he is going to have to pay thousands to get it to the point where he wants it to be. And vice versa I could not leave my current job unless he is paying me a certain amount each month to do this and then we both reap the profits from my work. So I would basically be doing all the leg work as he has no idea about any of it. he is just providing the funds, a salary to me, and also covering whatever costs are associated with the site.
Would you say it is fair to ask a 50/50 split or becuase he is the one investing the Money he has the right to ask for the majority which if it came down to it I would want it 51/49 split. And not only the right but woudl you say that is the best thing to do as well?
And lastly I do not know him super well and still want to get to know him better before doing any deal. And we both agreed all the paperwork will get done first before we do anything. His lawyer will draft it up then my lawyer can just review it so I don't have to pay as much.
Any guidance, words of wisdom, or anything you can offer on the best way to go about this is highly appreciated.
Thank you for your time in reading my post and I look forward to yoru response and helping others on here as well.
- Kyle
I am looking forward to contributing to the forum and helping others out.
Before I ask the question I will give you a little bit of my background in hopes this will help you understand my scenario.
I am 30 years old. I have been self employed since 2006 while going to school full time (graduated 2011 with a Bachelors in Aviation Administration, I have 4 kids and a wife) and actually just this year got a job in an industry I have been wanting to break into 4 months ago. Dealing with Aviation.
Anyhow I have two businesses currently and I am by no means near the level financially that I want to be at. But am on the road to that financial goal...
So that being said here is my big question about a Partnership.
One of my companies I started deals with doing online marketing, web design, that entire side of things.
I met an individual who own and runs a successful business that is completely offline and is not related in any shape or form to an online business.
So he tells me he has been looking for someone/a company to help him implement an idea of his. We have several meetings and subsequently the idea is great but it is going to be much more involved than just setting up a website and being done. There is going to be a lot of ongoing work, building a community, using facebook etc.... All stuff I know how to do and do on a daily basis. Basically everything needing done, I know how to do it or have the means to get it done. Now this individual knows absolutely nothing about online marketing or any side of the things I know. He doesn't understand really how facebook works or how you can advertise on there etc... He basically has the capital to invest in this venture, and some business skills to provide and a knowledge and understanding of the specific niche, which I do as well but not as much as him. Being 100% truthful if I had the time, and money to do this I would not need any sort of partner and could just hire it all out.
So as I looked at what he wants done I decided I want to be a partner in this and build it up, maintain the site, etc... and take this to who knows how far it could go. The market is there, it is a billion dollar market with plenty of room for a site like the one we want to do because currently there really isn't one to the level we want to take it.
My initial offer to him was he pays me X amount of dollars each month to work it full time. Basically a salary then once we become profitable I get paid that Amount up until we go over that amount then we both get paid an amount until we reach the same dollar amount and everything is a 50/50 split.
Well he said he couldn't do the dollar amount becuase it was too high, which it was, but I wanted to see if he could pay it so I asked. And he doesn't want to do a 50/50 split. He wants to hold the majority and be able to make a decision if it comes down to where we cannot agree etc... But he is willing to pay me for a specific period of time or a set dollar amount as well as do a partnership.
So my dillema is, what is the best way to go about this? I truly want a 50/50 partnership because without me he is completely dead in the water, has no idea how to even start this, and even if he hires a company he is going to have to pay thousands to get it to the point where he wants it to be. And vice versa I could not leave my current job unless he is paying me a certain amount each month to do this and then we both reap the profits from my work. So I would basically be doing all the leg work as he has no idea about any of it. he is just providing the funds, a salary to me, and also covering whatever costs are associated with the site.
Would you say it is fair to ask a 50/50 split or becuase he is the one investing the Money he has the right to ask for the majority which if it came down to it I would want it 51/49 split. And not only the right but woudl you say that is the best thing to do as well?
And lastly I do not know him super well and still want to get to know him better before doing any deal. And we both agreed all the paperwork will get done first before we do anything. His lawyer will draft it up then my lawyer can just review it so I don't have to pay as much.
Any guidance, words of wisdom, or anything you can offer on the best way to go about this is highly appreciated.
Thank you for your time in reading my post and I look forward to yoru response and helping others on here as well.
- Kyle
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